One day after marking its worst slump in more than 21 days, the precious metal also benefited from optimism about U.S. leaders being able to avoid the dangers presented by the fiscal cliff.
The president of the Federal Reserve Bank in New York said during a speaking engagement on Thursday that planning for next year will include reviewing various economic outlooks.
"I will be assessing the employment and inflation outlook in order to determine whether we should continue Treasury purchases into 2013," President William C. Dudley with the Federal Reserve Bank of New York said on Thursday during his speech in New York, according to Bloomberg.
At 11:23 a.m. on Thursday, gold futures climbed 0.42 percent, a $7.27 increase to $1,727.02 per troy ounce.
Geithner moves in
U.S. Treasury Secretary Timothy F. Geithner was prepared to convene with leaders of the U.S. Congress on Thursday as part of the effort to confront the looming threat of the fiscal cliff.
Roughly $607 billion in tax increases and spending cuts are set to be automatically implemented with the dawning of the new year unless political leaders and officials act.
"Talks about more stimulus measures being introduced are bullish for gold," commodity strategy head Bart Melek with TD Securities told the news source. "The market is expecting some sort of resolution soon to avert the fiscal cliff crisis."
Stimulus speak spurs gold
Bullion increased slightly more than 5 percent during the month of September, which primarily was due to the U.S. Federal Reserve stating that it would implement various measures of stimulus to prompt growth and development in the nation hosting the globe's largest economy.
During the period from when the Fed purchased $2.3 trillion-worth of debt from December 2008 to June 2011, the yellowish metal drove 70 percent higher in value.
Thursday's gains come one day after the precious metal lost roughly 1.5 percent of its value, representing the biggest loss since November 2.
The performance on Thursday also ended four days of losses.
Losses to the world's reserve currency were linked to the release of stronger global economic data as well as the likelihood of a fiscal cliff deal minimizing the attraction of the dollar as a safe haven monetary unit.
Gross domestic product from the third quarter in the U.S. climbed while economic sentiment unexpectedly rose in the euro zone, which pulled down borrowing expenses and costs in Spain.
U.S. House Speaker John Boehner said on Wednesday that he was optimistic about members of his Republican Party being able to successfully negotiate with Democrats and the Obama administration to blunt the threat posed by the world's largest economy slipping off the fiscal cliff, according to Reuters.
That commentary also proved to be beneficial to the Thursday performance of the precious metal.
"Generally people are still pretty bullish on gold and last night was just a one-off correction, nothing extraordinary," a Singapore-based trader told Reuters while noting that physical demand for bullion was slipping. "We aren't seeing much physical demand, which is quite bad for this time of the year."
With Friday being the final day of November, gold futures are set to kick off the final month of what might be bullion's 12th consecutive year of annual gains.
The record price for the precious metal is $1,923.70 per troy ounce as established on September 7 of last year.
THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.
THIS MATERIAL HAS BEEN PREPARED BY A DANIELS TRADING BROKER WHO PROVIDES RESEARCH MARKET COMMENTARY AND TRADE RECOMMENDATIONS AS PART OF HIS OR HER SOLICITATION FOR ACCOUNTS AND SOLICITATION FOR TRADES; HOWEVER, DANIELS TRADING DOES NOT MAINTAIN A RESEARCH DEPARTMENT AS DEFINED IN CFTC RULE 1.71. DANIELS TRADING, ITS PRINCIPALS, BROKERS AND EMPLOYEES MAY TRADE IN DERIVATIVES FOR THEIR OWN ACCOUNTS OR FOR THE ACCOUNTS OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS RISK TOLERANCE, MARGIN REQUIREMENTS, TRADING OBJECTIVES, SHORT TERM VS. LONG TERM STRATEGIES, TECHNICAL VS. FUNDAMENTAL MARKET ANALYSIS, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE INITIATION OR LIQUIDATION OF POSITIONS THAT ARE DIFFERENT FROM OR CONTRARY TO THE OPINIONS AND RECOMMENDATIONS CONTAINED THEREIN.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.
TRADE RECOMMENDATIONS AND PROFIT/LOSS CALCULATIONS MAY NOT INCLUDE COMMISSIONS AND FEES. PLEASE CONSULT YOUR BROKER FOR DETAILS BASED ON YOUR TRADING ARRANGEMENT AND COMMISSION SETUP.
YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD READ THE "RISK DISCLOSURE" WEBPAGE ACCESSED AT WWW.DANIELSTRADING.COM AT THE BOTTOM OF THE HOMEPAGE. DANIELS TRADING IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE. DANIELS TRADING DOES NOT GUARANTEE OR VERIFY ANY PERFORMANCE CLAIMS MADE BY SUCH SYSTEMS OR SERVICE.
GLOBAL ASSET ADVISORS, LLC (“GAA”) (DBA: DANIELS TRADING, TOP THIRD AG MARKETING AND FUTURES ONLINE) IS AN INTRODUCING BROKER TO GAIN CAPITAL GROUP, LLC (GCG) A FUTURES COMMISSION MERCHANT AND RETAIL FOREIGN EXCHANGE DEALER. GAA AND GCG ARE WHOLLY OWNED SUBSIDIARIES OF STONEX GROUP INC. (NASDAQ:SNEX) THE ULTIMATE PARENT COMPANY.